Opinions
James Hodgins
Canopy Growth Corp.
WEED-T
DON'T BUY
Dec 30, 2019
After all the hopes and dreams it turned out to be a 'sell on news' type of thing. The space has been a bit of a disaster. He does not think he is short this one but it is not a space he is keep on.
$25.110
Stock price when the opinion was issued
agriculture
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DON'T BUY
He was critical of the first-generation weed companies, then finally bought Curaleaf, because it operates in the U.S. WEED is backed by a big beverage company, so governance is fine. WEED operates in the much-smaller Canadian market, whereas the real money is and will be in America which he expects to legalize weed eventually.
agriculture
HOLD
They continue to be challenged in Canada. They overbuilt growth facilities. What is more important is what they are doing with their US strategy. They have an option to own assets in the US if it becomes legal in the US. They also have a partnership for gummies. Starting to look at cannabis market has a global opportunity. They will have an immediate and dominant position if the US legalizes cannabis.
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DON'T BUY
A millionaire stock? Vivid imagination. Hasn't made a penny to date. Balance sheet is sloping down, as it's consuming equity. Every time it takes a run, many people run for the exits. Pure speculation, a gamble, fluctuates wildly. Doesn't see the earnings or explosive growth in the Canadian market.
agriculture
DON'T BUY
Allan Tong’s Discover Picks Where does this leave the granddaddy of them all? Unlike the other two operators, Canopy has a huge presence in Canada which makes up roughly 60% of sales. A major drag here is cheap black-market weed, which keeps the price of ganja way below $10 a gram. (Cannabis is the only thing that’s gone down in price in 2022.) Still, if projections are correct, if the number of retailers plummets in coming months, and if supply shrinks and prices climb, then there is hope for revenue increases for Canopy. Read 3 Cannabis Stocks to go Higher for our full analysis.
agriculture